Applying for mortgages
When applying for mortgages, be prepared to provide certain documentation about your income, your current debts with outstanding balances and creditor’s addresses and the purchase contract for the home you want to buy. When you file your application, ask the lender how long the approval process on mortgages will take. The time may vary depending on the complexity of your mortgage, current market conditions, and whether you have to provide additional information. It’s common for a decision to be made within 30 days after the lender receives all the necessary information, but be prepared for it to take longer.
Applying for FHA or VA mortgages
Applications for FHA or VA loans may take longer than it takes for regular mortgages. If your application for a mortgage is turned down, federal law requires that the lender must tell you, in writing, the specific reasons for the denial of your request. Make sure you understand the reasons that are given. You may be able to find answers or alternatives that will satisfy the institution’s lending standards for mortgages. If that doesn’t happen, understanding fully why the loan was denied may improve your chances with the next lender you visit. Various factors may affect the loan decision.
Your important Mortgage
An important factor in the granting of any mortgage is the lender’s opinion of the house you want to buy. They will ask these questions: Is the size of the mortgage you need too high, given the property’s appraised value? Is the house typical to the neighborhood in which it is situated? If similar houses in the neighborhood have sold at prices comparable to yours, maybe the appraiser undervalued the property. In that case suggest that the lender re-examine the appraisal. You also have the right to receive a copy of the appraisal if you have paid for it.